How you can easily negotiate credit card debt - CBS46 News

How you can easily negotiate credit card debt

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(Source: CNN) (Source: CNN)

(CNN) – It's easy to use your credit card, but contacting your credit card company seems to be much harder. It shouldn't.

According to a CreditCards.com – 87% of cardholders who asked for a late fee to go away got that fee removed.

Matt Schulz, CreditCards.com senior industry analyst: "People have a lot more power in negotiating with their credit card issuer than they think they do."

All you have to do is look at the back of your card, and call that 800 number. It's not just late fees.

You can also ask your card to lower interest rates, waive your annual fee, or raise your credit limit.

"People would be stunned at how successful you could be at these requests. For example, about 90% of people who asked to have their credit limit raised, got that request granted."

Which can boost your credit score, and end up saving you money.

"If you are a little nervous about making the call to the bank, just remember the worst thing that can happen is they tell you no. But the best thing that can happen is that you get to keep some of that hard-earned money in your pocket instead of handing it over to the credit card company in the form of fees or interest."

DEBT SETTLEMENT REMINDERS: 
  • Debt settlement is for consumers experiencing a legitimate financial hardship.
  • You don't need to hire someone to help settle your debts, but it may help -- just watch out for scams.
  • Keep in mind that any forgiven debt may be taxed as income when tax season rolls around.
  • Debt settlement can hurt your credit score almost as much as bankruptcy.
  • Debt settlement is not your only option when you can't make payments. Forbearance let's you make smaller -- or defer -- payments for a period of time.
  • Not all types of debt qualify for settlement.

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